- DraftKings reported second quarter earnings on Friday that beat revenue expectations but showed a larger than anticipated loss.
- The popular sports-betting stock slumped as much as 10% in intraday trading Friday.
- DraftKing’s losses come as the coronavirus pandemic continues to slam sports at both the college and professional level.
- Watch DraftKings trade live on Markets Insider.
- Read more on Business Insider.
Shares of popular sports-betting company DraftKings slumped as much as 10% in intraday trading Friday after reporting a larger-than-expected loss, even though revenue topped analyst expectations.
Here are the key numbers:
- Adjusted loss per share: 55 cents per share reported, versus 20 cents per share (expected)
- Revenue: $US70.9 million reported, versus $US66.4 million (expected)
The $US161.4 million loss was much steeper than the $US28.11 million loss the company experienced in the same quarter last year. DraftKing’s losses come as the coronavirus pandemic continues to slam sports at both the college and professional level.
During the second quarter, major leagues including the NBA, MLB, and NHL were on hiatus due to the coronavirus pandemic. Recently, some college football leagues including the Big Ten and Pac-12 have cancelled their fall 2020 seasons due to concerns about the spread of COVID-19.
The company said that while sports are paused, it worked “creatively to engage fans with new fantasy sports and betting products for NASCAR, golf, UFC, and European soccer.” DraftKings saw a revenue boost when some sports came back, it said.
DraftKings also announced its full-year outlook, saying it expects pro forma revenue of $US500 million to $US540 million, which equals growth of 22% to 37%, in the second half of the year. The company ended the second quarter with $US1.2 billion in cash and no debt on its balance sheet.
“This guidance assumes that the professional sports calendar remains as currently contemplated and that DraftKings operates in the states in which it is currently live,” the company said. “DraftKings at this time does not anticipate an impact to its long-term plans due to COVID-19.”
DraftKings went public in April when it combined with Diamond Eagle Acquisition Corp., a special purpose acquisition company, and SBTech.
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